5 Major Chinese Firms To Delist From New York Stock Exchange. Five significant Chinese corporations, including two of the biggest oil producers in the nation, announced on Friday that they would be leaving the New York Stock Exchange.
Two of the largest oil companies in the world, Sinopec and PetroChina, announced in separate statements that they will file for the “voluntary delisting” of their American depositary shares.
Similar actions were announced on Friday by the Aluminum Corporation of China, also known as Chalco, China Life Insurance, and a Sinopec subsidiary with headquarters in Shanghai.
5 Major Chinese Firms To Delist From New York Stock Exchange. Plans for delisting come as Beijing and Washington are becoming more tense over US House Speaker Nancy Pelosi’s recent trip to Taiwan, which China says is a part of its territory.
Beijing has reacted angrily to the visit by holding unprecedented military exercises near the self-governing island and canceling collaboration with the US on subjects including combating drug smugglers and climate change.
The five businesses are listed on a list of corporations that the US Securities and Exchange Commission warned would be taken off Wall Street if they didn’t follow new auditing standards.
In separate releases, each of the five businesses stated that they planned to leave the NYSE by early September.
Late last year, when Chinese authorities were voicing concerns about Chinese companies going public in the United States, the new regulations went into force.
The five companies all cited Friday’s decision as being influenced by the expense of keeping the US listings as well as the hassle of meeting reporting requirements.
The Chinese Securities Regulatory Commission stated on Friday that the companies’ actions were motivated by their own business needs.
The regulator stated in a statement that the delistings “would not hinder the companies’ continued use of domestic and overseas capital markets for financing and development.”